SINGAPORE (Oct 22): The manager of Mapletree Logistics Trust (MLT) announced 2Q19 amount distributable to unitholders rose 32.5% year-on-year to $63.9 million while DPU grew 3.8% to 1.958 cents, on an enlarged unit base.
Revenue for 2Q19 rose 13.8% year-on-year to $106.6 million while net property income (NPI) grew 14.6% to $90.2 million.
Mapletree Logistics Trust Management says the robust growth in revenue and NPI was mainly driven by organic growth from the existing portfolio and contribution from two recent acquisitions in Hong Kong, partially offset by the absence of contribution from four divestments completed in FY18 and one divestment in 1Q19.
At the distributable income level, MLT’s results were also bolstered by the contribution from a 50% interest in 11 properties in China, which was acquired in June.
Accordingly, for the first six months of FY19, amount distributable to unitholders grew 30.8% year-on-year to $124.8 million while DPU gained 3.7% to 3.915 cents, on an enlarged unit base.
Ng Kiat, CEO of MLTM, says, “Over the past 12 months, we have gained significant momentum in our portfolio rejuvenation and recycling efforts, thereby increasing the proportion of modern-specs properties in MLT’s portfolio, especially in our core markets with growth potential. We will continue to build on this momentum to future-proof our portfolio.”
Taking into account the divestment of 531 Bukit Batok Street 23 which was completed on Oct 18, MLT’s portfolio comprises 138 properties with a book value of $7.6 billion. Of the 138 properties, 52 are in Singapore, nine in Hong Kong, 20 in Japan, nine in Australia, 11 in South Korea, 20 in China (50% interest in 11 properties), 14 in Malaysia and three in Vietnam.
MLT’s overall portfolio occupancy increase to 97.6% as at Sept 30, up from 95.7% a quarter ago. Rental rates for leases renewed/replaced in 2Q19 achieved an average positive rent reversion of approximately 1.3%, contributed mainly by Hong Kong and Vietnam.
MLT’s lease expiry profile remains well spread out with a weighted average lease term to expiry (by net lettable area) of about 3.8 years.
MLTM says concerns over the escalating trade tensions, volatility in the currency markets and rising interest rates will continue to weigh on business sentiment. These could impact investment and trade, and dampen global growth. Assets in MLT’s portfolio are largely used to support domestic consumption and leasing activities have remained stable to date. Nevertheless, the manager is watchful of the evolving environment and will maintain its focus on enhancing portfolio resilience.
In Singapore, the MLTM has recently completed the acquisition of five modern ramp-up warehouses and divested a property with older warehouse specifications. Mapletree Pioneer Logistics Hub, a redevelopment project completed in January 2018, has achieved 100% occupancy rate since August.
Year to date, units in MLT are down 7.5% to $1.23.
